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4 TUESDAY, JUNE 11- THURSDAY, JUNE 13, 2013 NEWS Cape Gazette
tO •
Housing authority answers Chancery Court suit
By Kara Nuzback the bill's head sponsor, said Sen. efits to homeowners since 2009.
knuzback@capegazette.com Karen Peterson, D-Stanton, rec- In a June 5 answer to the com-
ommended the substitution, plaint, Deputy Attorney General
A bill to limit manufactured Sussex County senators Ernie Edward Black says the authority's
housing park owners' ability to Lopez, R-Lewes; Gary Simpson, power to collect fees did not
raise lot rents was modified by R-Milford; and Bob Venables, expire in 2006, and the plain-
the Senate. D-Laurel; voted in favor of the tiffs' class-action suit does not
In a vote of 17-1, senators substitute bill. represent the interests of all
approved a substitute bill for Senators Gerald Hocker, manufactured community own-
Senate Bill 33, which would re- R-Ocean View, and Brian Pet- ers and tenants.
quire landowners to prove any tyjohn, R-Georgetown, were According to Black's answer
increase in lot rent higher than absent during the vote. Hocker to the complaint, the authority
the three-year average increase was present for the vote on an- approved the $3 monthly fee on
in the consumer price index was other bill just 30 minutes prior Feb. 19, 2004, and reaffirmed that
made to compensate for the cost to the vote on SB 33. approval by unanimous consent
of operating, maintaining and Jan. 31, 2006.
improving the community. Authority answers lawsuitThe authority admits that no
The original bill would have Three landlords and two ten- benefits have been paid out since
given Delaware Manufactured ants of manufactured homeApril 2009 because, they claim,
Home Relocation Authority the parks in Delaware filed athere has been no change in
power to deny rent increases to class-action complaint against zoning use for any manufactured
park owners. Delaware Manufactured Home housing community because of
New language introduced Relocation Authority in the the economic downturn, which
June 6 says park owners must Court of Chancery May 6. began in 2009. the economy
give written notice of lot rent According to the complaint, improves, DEMHRA anticipates
increases to the authority and to the General Assembly gave the an increase in applications for
all park tenants, authority the right to adjust, benefits when and as manu-
If the increase exceeds the eliminate or reinstate the as- factured home communities
consumer price index, the au- sessment fee by Jan. 31, 2006. undergo a change in use," Black
thority would initiate mediation review of DEMHR2/s board wrote.
between the tenants and the minutes between 2004 and Jan. Mitch Crane, board chairman
park owner. 31, 2006, reveals that DEMHRA of DEMHRA, told the Cape Ga-
According to the substitute never adjusted the amount of zette the lawsuit was brought in
bill, "If the dispute remains un- the trust fund assessment," at-
resolved after mediation, the torney John Paradee wrote.
authority will submit the dispute The authority has continued
to non-binding arbitration." to collect fees illegally for seven
Sen. Bruce Ennis, D-Smyrna, years and has paid out no ben-
RON MACARTHUR PHOTO
SENATORS VOTED to modify a rent justification bill June 6.
order to hinder rent justification.
"The plaintiffs' claims are
antagonistic of those manufac-
tured community owners and
tenants who will be deprived
of substantial trust funds avail-
able to provide benefits when
a manufactured home commu-
nity undergoes a change in use,"
Black wrote.
t DonaldJ. Foraker, Jr.,CPA ' p
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